Customs Duty Exemption on Petrochemicals, AiMeD welcomes

Association of Medical Device Industry reiterates Call for Temporary GST Relief on Raw Materials

New Delhi: The Association of Indian Medical Devices Industry (AiMeD) extends its sincere gratitude to the Government of India, particularly the Ministry of Finance and the Ministry of Commerce & Industry, for the prompt announcement of full customs duty temporary exemption on critical petrochemical products until June 30, 2026. This targeted relief, notified today by the Press Information Bureau (PIB), directly addresses the severe inflationary cost pressures faced by Indian medical devices manufacturers due to supply chain disruptions from the ongoing conflict in West Asia.

But it is not enough. AiMeD ‘Mange more’

AiMeD had recently urged the Ministries, through a formal letter, to intervene decisively on escalating raw material costs—particularly plastics and chemicals essential for medical devices such as disposables, drug delivery systems, and implants. Its prayers were answered promptly.

The government’s quick action will ensure supply stability, lower input costs for our sector, and support uninterrupted production of life-saving devices amid global volatility. This exemption will benefit not only medical devices but also pharmaceuticals, packaging, and other downstream industries, ultimately easing burdens on healthcare providers and patients.

“While we applaud this proactive step, AiMeD reiterates its request for temporary relief on GST rates for key input raw materials used in medical devices as well as prompt overdue refunds due to inverted GST tax structure . Reducing GST from the current 18% on inputs to 5% would provide much-needed cumulative relief, further mitigating war-induced cost escalations and bolstering the competitiveness of India’s medical devices manufacturing ecosystem not only for Indian Consumers but globally” stated Rajiv Nath , Forum Coordinator, AiMeD.

Rajiv Nath clarified saying , ‘ GST rebate is most important as manufacturers who buy plastics locally will not get menefit of duty reduction.’

AiMeD remains committed to collaborating with the government on regulatory harmonisation, trade facilitation, and self-reliance in healthcare manufacturing (Atmanirbhar Bharat). We look forward to positive consideration of our GST proposal too .